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2022 06 07 CC & HA Minutes Joint MtgMINUTES Page 1 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING CITY COUNCIL AND HOUSING AUTHORITY MINUTES TUESDAY, JUNE 7, 2022 CALL TO ORDER A regular meeting of the La Quinta City Council was called to order at 3:00 p.m. by Mayor Evans. This meeting provided teleconferencing accessibility pursuant to Executive Orders N-60-20 and N-08-21 executed by the Governor of California, and subsequently Assembly Bill 361 (AB 361, 2021), enacted in response to the state of emergency relating to novel coronavirus disease 2019 (COVID-19) and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). PRESENT: Councilmembers Fitzpatrick, Peña, Radi, Sanchez, Mayor Evans ABSENT: None STAFF PRESENT: City Manager McMillen, City Attorney Ihrke, City Clerk Radeva, Acting Deputy City Clerk McGinley, Director of Business Unit and Housing Development Villalpando, Community Resources Director Escobedo, Finance Director Martinez, Financial Services Analyst Hallick, Public Works Director/City Engineer McKinney, Design and Development Director Castro, Planning Manager Flores, Senior Planner Flores, Permit Technician Lorett. CONFIRMATION OF AGENDA Councilmember Peña said he will recuse himself and will abstain from discussion and vote on Consent Calendar Item No. 18 due to a potential conflict of interest stemming from the proximity of his real property interest to the project location, and asked for this item to be pulled for a separate vote. Council concurred. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CLOSED SESSION – CITY COUNCIL 1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION MINUTES Page 2 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION; SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO PARAGRAPH (2) OR (3) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9 (NUMBER OF POTENTIAL CASES: 1) 3. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: CHRIS ESCOBEDO, COMMUNITY RESOURCES DIRECTOR; AND EMPLOYEE ORGANIZATION: LA QUINTA CITY EMPLOYEES’ ASSOCIATION 4. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: BILL IHRKE, CITY ATTORNEY; AND UNREPRESENTED EMPLOYEE: CITY MANAGER CALL TO ORDER – HOUSING AUTHORITY SPECIAL MEETING HELD JOINTLY WITH THE CITY COUNCIL REGULAR MEETING A special meeting of the La Quinta Housing Authority was called to order at 3:03 p.m. by Chairperson Sanchez. ROLL CALL: Authority Members: Evans, Fitzpatrick, Radi, Peña, and Chairperson Sanchez VERBAL ANNOUNCEMENT – AB 23 [AUTHORITY SECRETARY] CONFIRMATION OF AGENDA – HOUSING AUTHORITY – Confirmed PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – HOUSING AUTHORITY – None CHAIRPERSON SANCHEZ ASKED MAYOR EVANS TO ACT AS PRESIDING OFFICER FOR THE HOUSING AUTHORITY FOR THE REMAINDER OF THE SPECIAL MEETING COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:05 P.M. MINUTES Page 3 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 4:07 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken on Closed Session Item Nos. 1, 2, and 3 that require reporting pursuant to Government Code section 54957.1 (Brown Act); and Council will recess back to Closed Session to continue consideration of Closed Session Item No. 4 after the open portion of the regular City Council meeting. PLEDGE OF ALLEGIANCE Mayor Pro Tem Fitzpatrick led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – CITY COUNCIL AND HOUSING AUTHORITY PUBLIC SPEAKER IN-PERSON: James Tufo, La Quinta – President of the Parc La Quinta homeowners’ association spoke in opposition of the proposed housing developments at Washington Street and Avenue 50. ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS – CITY COUNCIL AND HOUSING AUTHORITY – None CONSENT CALENDAR – CITY COUNCIL COUNCILMEMBER PEÑA RECUSED HIMSELF FROM DISCUSSION AND VOTE ON CONSENT CALENDAR ITEM NO. 18 DUE TO A POTENTIAL CONFLICT OF INTEREST STEMMING FROM THE PROXIMITY OF HIS REAL PROPERTY INTEREST TO THE PROJECT LOCATION AND ASKED FOR THIS ITEM TO BE PULLED FOR A SEPARATE VOTE 1. APPROVE REGULAR MEETING MINUTES OF MAY 3, 2022 2. APPROVE SPECIAL MEETING MINUTES OF MAY 9, 2022 3. APPROVE REGULAR MEETING MINUTES OF MAY 17, 2022 4. EXCUSE ABSENCES OF CHAIRPERSON NIETO AND COMMISSIONER CALDWELL FROM THE MAY 24 AND JUNE 14, 2022, PLANNING COMMISSION MEETINGS, RESPECTIVELY 5. AFFIRM RESOLUTION NO. 2021-035 FINDINGS RELATED TO THE STATE OF EMERGENCY DUE TO COVID-19 AUTHORIZING THE MINUTES Page 4 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING CITY MANAGER TO CONTINUE TO IMPLEMENT TELECONFERENCE ACCESSIBILITY TO CONDUCT PUBLIC MEETINGS PURSUANT TO ASSEMBLY BILL 361 (STATS. 2021, CH. 165) 6. APPROVE CHANGE ORDER NO. 3 TO CONTRACT WITH CREATIVE LIGHTING INC. FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 CITYWIDE LIGHTING MAINTENANCE SERVICES PROJECT NO. 2018-31 FOR A ONE-YEAR TERM EXTENSION AND RELATED COMPENSATION 7. APPROVE CHANGE ORDER NO. 5 TO CONTRACT WITH PWLC II, INC. FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES PROJECT NO. 2018-30 FOR A ONE-YEAR TERM EXTENSION AND RELATED COMPENSATION 8. ADOPT RESOLUTIONS TO 1) APPROVE PRELIMINARY 2022/23 ENGINEER’S ANNUAL LEVY REPORT FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1, AND 2) DECLARE INTENT TO LEVY ANNUAL ASSESSMENTS FOR LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 89-1 [RESOLUTION NOS. 2022-014 AND 2022-015] 9. ADOPT RESOLUTION TO REQUEST COUNTY OF RIVERSIDE PLACE COLLECTION COSTS FOR SOLID WASTE HANDLING SERVICES AT SINGLE-FAMILY DWELLINGS ON TAX ROLLS [RESOLUTION NO. 2022-016] 10. AUTHORIZE OVERNIGHT TRAVEL FOR TRAFFIC SIGNAL TECHNICIAN TO ATTEND THE INTERNATIONAL MUNICIPAL SIGNAL ASSOCIATION TRAINING IN ONTARIO, CALIFORNIA FROM JUNE 27-30, 2022 11. APPROPRIATE FUNDING IN FISCAL YEAR 2021/22 TO UPFIT 10 CITY OWNED VEHICLES 12. APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH GOVOS, INC. (FORMER MUNIREVS, INC., DBA LODGINGREVS) FOR SHORT-TERM VACATION RENTAL PROGRAM SERVICES, TO INCREASE COMPENSATION FOR FISCAL YEAR 2021/22, AND TO EXTEND THE TERM THROUGH FISCAL YEAR 2023/24 13. APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES WITH PALMS TO PINES PRINTING, FOR MINUTES Page 5 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING PROMOTIONAL AND PRINTING SERVICES, TO INCREASE COMPENSATION AND TO EXTEND THE TERM THROUGH FISCAL YEAR 2022/23 14. RECEIVE AND FILE THIRD QUARTER FISCAL YEAR 2021/22 TREASURY REPORTS FOR JANUARY, FEBRUARY, MARCH 2022 15. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2022 16. APPROVE DEMAND REGISTERS DATED MAY 13, 20, & 27, 2022 17. ACCEPT WASHINGTON AND FRED WARING TRIPLE LEFT PROJECT NO. 2017-01, LOCATED AT THE WASHINGTON STREET AND FRED WARING DRIVE INTERSECTION 18. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE CITYWIDE SLURRY SEAL IMPROVEMENTS PROJECT NO. 2021-08 LOCATED IN VARIOUS LOCATIONS 19. APPROVE PLANS, SPECIFICATIONS, ENGINEER’S ESTIMATE, AND ADVERTISE FOR BID THE SILVERROCK PARK VENUE WIFI AND CAMERA BACKBONE PROJECT MOTION – A motion was made and seconded by Councilmembers Fitzpatrick/ Radi to approve Consent Calendar Item Nos. 1-17 and 19, as recommended, with Item No. 5 reaffirming Resolution No. 2021-035, Item No. 8 adopting Resolution Nos. 2022-014 and 2022-015, and Item No. 9 adopting Resolution No. 2022-016. Motion passed unanimously. MOTION – A motion was made and seconded by Councilmembers Sanchez/ Radi to approve Consent Calendar Item No. 18 as recommended. Motion passed: ayes – 4, noes – 0, abstain – 1 (Peña), absent – 0. CONSENT CALENDAR – HOUSING AUTHORITY 20. APPROVE HOUSING AUTHORITY SPECIAL MEETING MINUTES OF MAY 3, 2022 MOTION – A motion was made and seconded by Authority Members Peña/Radi to approve the Consent Calendar as recommended. Motion passed unanimously. MINUTES Page 6 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING BUSINESS SESSION 1. ADOPT RESOLUTION ACCEPTING THE CERTIFICATION OF THE RIVERSIDE COUNTY REGISTRAR OF VOTERS AS TO SUFFICIENCY OF THE INITIATIVE PETITION ENTITLED “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS (STVRs) IN NON-EXEMPT AREAS OF THE CITY OF LA QUINTA,” BY DECEMBER 31, 2024 [RESOLUTION NOS. 2022-017] City Clerk Radeva presented the staff report, which is on file at the Clerk’s Office. The PUBLIC SPEAKERS listed below in the order in which they spoke, provided comments, in-person and via teleconference (Zoom), as follows:  Kimberly Estrada, La Quinta (Zoom) – school principal – importance of STVR revenue in funding public safety for schools.  George M. Yin, Kaufman Legal Group (Zoom) – specializes in election law - defects with the initiative petition to phase-out STVR. Mayor Evans asked City Attorney Ihrke to respond to Mr. Yin’s comments. Mr. Ihrke said that his office has reviewed letters on this matter received from legal counsel for VRON-LQ and petition proponents, Neighbors for Neighborhoods; that none of the cases cited by VRON-LQ are squarely on point in this matter; that Council has only three options per election Code Section 9215 now that the Riverside County Registrar of Voters (ROV) has verified the sufficiency of the petition signatures; and that the City Attorney’s Office recommends that Council proceed with certification of the petition.  Eddy Estrada, La Quinta (in-person) – STVR owner - supports STVRs.  Steven Niederhauser, La Quinta (in-person) – supports STVRs.  Ruby Rodriguez, La Quinta – was called, but was not present and did not provide comments.  Donald Scott, La Quinta (in-person) – cleaning service owner – supports STVRs.  Alondra Palomino (Zoom) – Minut Noise Monitoring employee - supports STVRs.  Sarah Gelberd, La Quinta (Zoom) – STVR owner – supports STVRs.  Don Shoffstall, La Quinta (in-person) [used additional speaker time donated by 3 residents – Matt Nelson, Marty Butler, and Barbara Lambert] – representative of Neighbors for Neighborhoods (N4N) and a proponent of the initiative – spoke about issues associated with STVRs and in support of placing the initiative on the ballot.  Paul Spitzer, La Quinta (in-person) –opposes STVRs. MINUTES Page 7 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING  Lynne Daniels, La Quinta (in-person) – owner of Dupont estate - supports STVRs.  David Dinnel, Los Angeles/La Quinta (in-person) – STVR owner - supports STVRs.  Kathleen Dwyer, La Quinta (in-person) – supports STVRs due to revenue it brings to City.  Dean Graves, La Quinta (in-person) – opposes STVRs and supports placing the initiative on the ballot.  Nilda Lopez (in-person) [comments were provided in Spanish and translated by Senior Planner Carlos Flores] - cleaning service owner – supports STVRs due to the work it provides to her and her co-workers.  Roger Monroy, La Quinta (in-person) – STVR owner – supports STVRs.  James Lambert, La Quinta (in-person) [used additional speaker time donated by resident Carol Nolte] – opposes STVRs.  Carine Topal, La Quinta (in-person) – STVR owner – supports STVRs.  Anna Duitruk, La Quinta (in-person) – VRON-LQ founder - supports STVRs.  Steve Owens, La Quinta (in-person) – STVR owner – supports STVRs.  Kay Wolff, La Quinta - (in-person) – [used additional speaker time donated by Jan Storbo] - opposes STVRs.  Joe Lutz, La Quinta (in-person) – opposes STVRs.  Carrie Breeswine, La Quinta (in-person) – opposes STVRs.  Richard Gray, La Quinta (in-person) – opposes STVRs.  Jeff Smith, La Quinta (in-person) – opposes STVRs and supports putting the initiative on the ballot.  Katie Barrows, La Quinta (in-person) – supports putting the initiative on the ballot.  Amanda Ryan, La Quinta (in-person) – supports putting the initiative on the ballot.  Glenn Chapman, La Quinta (in-person) – supports STVRs if well regulated; and supports putting the initiative on the ballot.  Edward Armendarez, La Quinta (in-person) – opposes STVRs.  Stephen Libbe, Palm Desert (in-person) – born in LQ, not a current resident – CEO of several service businesses – supports well-regulated STVRs.  Stephanie Nevels-Yanchar, Renton, WA/La Quinta (in-person) – STVR owner - supports STVRs.  Victor Barbosa, La Quinta (Zoom) – restaurant owner - supports STVRs.  Robert Gravina, La Quinta (Zoom) – STVR owner - supports STVRs.  Ellen Lindberg, La Quinta (Zoom) – supports STVRs.  Melanie Sprague, La Quinta (Zoom) – opposes banning STVRs due to City revenue loss.  Tom Kendrick, La Quinta (Zoom) – supports STVRs. MINUTES Page 8 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING The following WRITTEN PUBLIC COMMENTS, listed in alphabetical order, were received, distributed to Council, made available on the City’s website, and included in the record of this meeting:  James Alderson – comments on STVRs  Anonymous – supports STVRs  Edward Armendarez – supports the initiative  Boyd Beghtol – opposes STVRs  Evette Bruesehoff – supports STVRs  Nancy Chiles – supports the initiative  Noreen and Joe Diodatin – support the initiative  Sarah Gelberd – opposes the initiative  Dean and Cathy Graves – support the initiative  Jeff and Nini Hillebrand – support the initiative  Alfredo Izmajtovich – support the initiative  Kaufman Legal Group – Attorney George M. Yin – defects with the initiative petition  Jim and Barbara Lambert – support the initiative and oppose STVRs [these comments are also applicable to Business Session Item Nos. 2 and 3 below]  Minut Noise Monitoring – Alondra Palomino – supports STVRs  Lisa Moller – supports the initiative  Marde Olson – supports the initiative  Marde and Mark Olson – support the initiative  David Alan Park – supports the initiative  Carolsue Peyton – supports the initiative  Jennifer Porter – opposes the initiative and supports STVRs  Terry Pracht – supports the initiative  Marv and Stefanie Segal – oppose STVRs  Mario Sewell – supports the initiative [these comments are also applicable to Business Session Item Nos. 2 and 3 below]  Carine Topal – support STVRs  Visit Greater Palm Springs – support STVRs Council expressed its support for placing the initiative on the ballot in accordance with the California Election Code. MOTION – A motion was made and seconded by Councilmembers Radi/ Fitzpatrick to adopt Resolution No. 2020-017 accepting the certification of the Riverside County Registrar of Voters as to the sufficiency of the initiative petition entitled “Phase-Out and Permanent Ban of Non-Hosted Short-Term Vacation Rentals in Non-Exempt Areas in the City of La Quinta,” by December 31, 2024: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ACCEPTING THE CERTIFICATION OF THE RIVERSIDE MINUTES Page 9 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING COUNTY REGISTRAR OF VOTERS AS TO THE SUFFICIENCY O THE INITIATIVE PETITION ENTITLED “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS IN NON-EXEMPT AREAS OF THE CITY OF LA QUINTA,” BY DECEMBER 31, 2024 Motion passed unanimously. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 6:28 P.M. MAYOR EVANS RECONVENED THE REGULAR COUNCIL MEETING AND SPECIAL HOUSING AUTHORITY MEETING HELD JOINTLY AT 6:48 P.M. WITH ALL MEMBERS PRESENT 2. RECEIVE AND FILE REPORT, PREPARED PURSUANT TO CALIFORNIA ELECTIONS CODE SECTION 9212, ASSESSING THE FISCAL, ECONOMIC, AND RELATED IMPACTS OF THE INITIATIVE MEASURE ENTITLED “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS IN NON- EXEMPT AREAS OF THE CITY OF LA QUINTA,” BY DECEMBER 31, 2024 City Manager McMillen and City Consultant Jon Hockenyos, President and CEO with TXP Economics presented the staff report, which is on file in the Clerk’s Office. Council discussed the possibility of property owners and renters using anonymous, untraceable block-chain technology driving STVRs underground; factoring into the report the cost of enforcing a STVR ban; illegal operators, post-ban, are not factored into the report; no available data on revenue changes or house prices from other cities that have banned STVRs; golf revenue is included in the entertainment figures; examining enforcement costs prior to adopting the STVR ordinance; calculating the direct impact to the City’s budget over the next 10 years or more; reminder that Measure G was passed knowing that 65% would be paid by visitors - residents passed it knowing that they wouldn’t have to carry the entire burden; transient occupancy tax rates in other cities; STVRs success in the Cove due to the home renovations made by STVR owners; the effect of inflation on City revenue; spending by vacationers versus residents; Greater Palm Springs Visitors’ Bureau study findings that 1 in 5 residents is in a hospitality-related job, and the average annual increase in taxes to residents would be $4,000 if not for the local hospitality industry; affordability of former STVR homes to low- and mid-income buyers/renters if ban is enacted; creating a map of current and planned low-income housing properties in the City for resident educational purposes; current average home prices in the City, and current average home prices in the Cove; the effect the ban would have on housing MINUTES Page 10 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING inventory; fluctuations in school enrollment and birth rates; the current freeze on new permits continues the revenue flow while gradually decreasing the number of STVRs as new STVRs in permitted areas are developed – financial analysis of this versus a complete ban on January 1, 2025 is needed; need for 10-year revenue projections should the ban pass, and corresponding list of projects/services affected; collecting spending pattern data to determine the home zip codes of restaurant goers; permitted STVR areas, exempt from the ban, under development now or planned, will take many years to be built out, replenish the inventory and revenue; and the need to protect all sources of revenue. Council directed staff to report back on:  Budget revenue projections, and prioritizing expenditures  Transition plans  Housing inventory  Property tax implementations  Case studies of STVRs going underground  Changes in STVR enforcement  Block-chain technology – crypto currency and contract execution MOTION – A motion was made and seconded by Councilmembers Peña/ Fitzpatrick to receive and file report, prepared pursuant to California Elections Code section 9212, assessing the fiscal, economic, and related impacts of the initiative measure entitled “Phase-Out and Permanent Ban of Non-Hosted Short-Term Vacation Rentals in Non-Exempt Areas of the City of La Quinta,” by December 31, 2024. Motion passed unanimously. 3. ADOPT RESOLUTIONS: (A) ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY AN INITIATIVE ORDINANCE AND BALLOT MEASURE PROPOSING THE “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS IN NON-EXEMPT AREAS OF THE CITY OF LA QUINTA,” BY DECEMBER 31, 2024, AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022 [RESOLUTION NO. 2022-018] (B) SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS REGARDING THE INITIATIVE ORDINANCE AND BALLOT MEASURE; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE SAME [RESOLUTION NO. 2022-019] MINUTES Page 11 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING (C) REQUESTING RIVERSIDE COUNTY TO CONSOLIDATE THE ELECTION FOR THE INITIATIVE ORDINANCE AND BALLOT MEASURE WITH THE GENERAL MUNICIPAL ELECTION AND STATEWIDE GENERAL ELECTION, TO BE HELD ON NOVEMBER 8, 2022 [RESOLUTION NO. 2022-020] City Clerk Radeva and City Attorney Ihrke presented the staff report, which is on file in the Clerk’s Office. Council discussed deciding at a subsequent meeting if it wished to take a collective position on the initiative, and if so, who would draft an argument in- favor/opposed and any rebuttal; and the need for the additional data requested from staff before the Council takes a position. MOTION – A motion was made and seconded by Councilmembers Peña/Radi to: (A) Adopt Resolution No. 2022-018: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF LA QUINA AN INITIATIVE ORDINANCE AND BALLOT MEASURE PROPOSING THE “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS IN NON-EXEMPT AREAS OF THE CITY OF LA QUINTA” AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AS CALLED BY RESOLUTION NO. 2022-009 (B) Adopt Resolution No. 2022-019 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS AND PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS REGARDING AN INITIATIVE ORDINANCE AND BALLOT MEASURE, PROPOSING THE “PHASE-OUT AND PERMANENT BAN OF NON-HOSTED SHORT-TERM VACATION RENTALS IN NON-EXEMPT AREAS IN THE CITY OF LA QUINTA,” AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS (C) Adopt Resolution No. 2022-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA QUINTA, CALIFORNIA, REQUESTING THAT THE BOARD OF SUPERVISOR OF THE COUNTY OF RIVERSIDE, CALIFORNIA, CONSOLIDATE WITH THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AND THE STATEWIDE GENERAL ELECTION TO MINUTES Page 12 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING BE HELD ON THAT DATE, AN INITIATIVE ORDINANCE AND BALLOT MEASURE TO BE SUBMITTED TO THE QUALIFIED ELECTORS OF THE CITY OF LA QUINTA PROPOSING THE “PHASE-OUT AND PERMANENT BAN ON NON-HOSTED SHORT-TERM VACATION RENTALS IN NON- EXEMPT AREAS IN THE CITY OF LA QUINTA,” BY DECEMBER 31, 2024 Motion passed unanimously. STUDY SESSION – CITY COUNCIL AND HOUSING AUTHORITY 1. DISCUSS FISCAL YEAR 2022/23 PRELIMINARY PROPOSED BUDGET Finance Director Martinez presented the staff report, which is on file in the City Clerk’s Office. Council discussed the deficit in the Lighting and Landscape Fund; need to protect all sources of revenue; developer reimbursement schedule; and gratitude to staff for a clear and thorough report. 2. DISCUSS FISCAL YEAR 2022/23 PROPOSED HOUSING AUTHORITY BUDGET Finance Director Martinez presented the staff report, which is on file in the City Clerk’s Office. Council discussed the Redevelopment Agency (RDA) Loan Repayment; and Fund 243 RDA Low-Mod Housing budget. ADJOURNMENT – HOUSING AUTHORITY There being no further business, a motion was made and seconded by Authority Members Radi/Fitzpatrick to adjourn the Housing Authority special meeting at 8:10 p.m. Motion passed unanimously. PUBLIC HEARINGS – CITY COUNCIL 1. ADOPT RESOLUTIONS TO CERTIFY ENVIRONMENTAL ASSESSMENT 2019-0010 AND APPROVE SPECIFIC PLAN 2019- 0003 (AMENDMENT V TO ANDALUSIA SPECIFIC PLAN), GENERAL PLAN AMENDMENT 2019-0002, ZONE CHANGE 2019-0004, SPECIFIC PLAN 2020-0002, AND TENTATIVE TRACT MAP 2019- 0005; INTRODUCE FOR FIRST READING ORDINANCES APPROVING ZONE CHANGE 2019-0004 AND DEVELOPMENT MINUTES Page 13 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING AGREEMENT 2021-0002; CEQA: CORAL MOUNTAIN RESORT ENVIRONMENTAL IMPACT REPORT (SCH #2021020310); LOCATION: SOUTH OF AVENUE 58, NORTH OF AVENUE 60 AND EAST AND WEST OF MADISON STREET [RESOLUTION NOS. 2022-021 AND 2022-022; ORDINANCE NOS. 600 AND 601] Consulting Planner Criste and Planning Manager Flores presented the staff report, which is on file at the Clerk’s Office. Consultant Rosalyn Prickett, Senior Water Resources Planner with civil engineering firm Woodward and Curran provided additional information on water supply assessments (WSA). Council discussed greenhouse gas emissions and the visual impact of encompassing walls would exist for any type of development; the impacts of greenhouse gas emissions, visible walls, and construction noise is equal to or less than that of the formally approved residential/golf course plan being amended; this project may require more grading than the original residential/golf course project; traffic impact for this project will be less than the original residential/golf course plan; for historical water demand purposes, the area will be designated as vacant land; the number of intersections to be included in the traffic study; the regional impact of traffic, specifically on Interstate 10; lighting containment on-site; lighting impact study included the 80’ poles, the resort/commercial, and the residences; the lighting impact from the 80’ poles could be mitigated by reducing the hours they are lit; the timeline for full build out; Andalusia started developing about 20 years ago, and is not yet fully built out; market demand for golf course community housing; reliance on Coachella Valley Water District (CVWD) experts to review the WSA for accuracy and sufficiency; CVWD experts based their approval on the previous Urban Water Management Plan, not the most currently adopted Plan (Plans are updated every five years); the source of water proposed, and the means of water discharge; comparison of nearby bodies of water – Lake Cahuilla 133 acres, and combined Trilogy, Quarry, Andalusia 55 acres (for aesthetics and backup irrigation), versus the pool and two lakes of this project 27.6 acres; the need for expert forecasting of long-term weather patterns in order to evaluate water usage; CVWD’s long-range Plan incorporates all available water sources as well as conservation; and possibility of requesting an updated WSA based on the current severe drought conditions. MAYOR EVANS DECLARED THE PUBLIC HEARING OPEN AT 9:18 P.M. PUBLIC SPEAKER: John Gamlin, President, CM Wave Development – provided a detailed presentation of the project. MINUTES Page 14 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING Council discussed incorporating shade structures and trees; use of soft surface materials for walkways and paths as much as possible; the public trail along the base of Coral Mountain and its connection to other existing and planned trails; and public access by reservation to the hotel and dining. MAYOR EVANS CALLED FOR A BRIEF RECESS AT 9:48 P.M. MAYOR EVANS RECONVENED THE COUNCIL MEETING AT 10:03 P.M. WITH ALL MEMBERS PRESENT The PUBLIC SPEAKERS listed below in the order in which they spoke, provided comments, in-person and via teleconference (Zoom), as follows:  Penny Boehm, La Quinta (in-person) – supports the project on behalf of herself, her husband and two adult children  Tracy Bartlett, La Quinta (in-person) – a UC Palm Desert certified California Naturalist and California Climate Steward; presented a Power Point regarding historic temperature change; opposes the project  Katie Barrows, La Quinta – opposes the project  La Quinta Residents for Responsible Development (LQRRD) – opposing the project:  Derek Wong, La Quinta (in-person) – petition against the project  Judy Hovjacky, La Quinta (in-person) – pool cleanliness, light  Bob Lasser, La Quinta (in-person) – [used speaker time donated by residents Catherine Smithweiss and Judy Gavigan] – 2035 General Plan  Carolyn Winnor, La Quinta (in-person) – [used speaker time donated by resident Richard Harris] – noise  Sheila Warren, La Quinta (in-person) – light  Donna Williams, La Quinta (Zoom) – public safety  Lori Kilburn, La Quinta (in-person) – basis of zone change to Tourist Commercial  Carol Strop, La Quinta (in-person) – not in harmony  Phil Novak, La Quinta (in-person) – carbon footprint  Alena Callimanis, La Quinta (in-person) – [used speaker time donated by residents Duncan Woodfin, Howard Weiss, and Karen Thomas] – water crisis  Rick Roth, La Quinta (in-person) – [used speaker time donated by resident Sheryl Weiss] – revenue and costs to City  Brad Anderson, Rancho Mirage (in-person) – opposes the project  Joe Hammer, Indian Wells (in-person) – [used speaker time donated by Elizabeth Hammer] - La Quinta landowner, supports the Project  Kim Hammer, Indian Wells (in-person) – supports the project MINUTES Page 15 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING  Bruce Krider, La Quinta (in-person) – [used speaker time donated by resident Dennis McLatcher and Laura Dolata] – opposes the project  Tom Jensen, La Quinta (Zoom) – opposes the project  Colin Barrows, La Quinta (Zoom) – opposes the project  Gianna Wright, La Quinta (Zoom) – opposes the project  Jessica Lenz, La Quinta (Zoom) – opposes the project  Sandy Hernandez, La Quinta (Zoom) – member Cactus-to-Cloud Institute, opposes the project  Kathy Weiss, La Quinta (Zoom) – opposes the project  Alex De La Cruz, La Quinta (Zoom) – opposes the project  Juline Holliday, La Quinta (Zoom) – opposes the project  Elizabeth Erickson, La Quinta (Zoom) – a UC certified California Naturalist and California Climate Steward; opposes the project The following WRITTEN PUBLIC COMMENTS, in OPPOSITION of the project, listed in alphabetical order, were received, distributed to Council, made available on the City’s website, and included in the record of this meeting:  Edward Armendarez  Sally and Robert Arroyo  Fritz Bachli  Tracy Bartlett and Katie Barrows  Guy and Barbara Bishop  Alena Callimanis  Eve Castles  Scott Connelly  Richard G. Dale, JD  Patricia Jones  Angie Lafferty  La Quinta Residents for Responsible Development  Marge Pierce  Susan Rosenberg  Linda Joy Salas  SBEMP – Bruce Bauer, Attorney  Joan Speer  Susan St. Louis  Dorian Whitney  Derek Wong  Gianna Wright The following WRITTEN PUBLIC COMMENTS, in SUPPORT of the project, listed in alphabetical order, were received, distributed to Council, made available on the City’s website, and included in the record of this meeting:  Karen Ahaesy  Wesley Ahlgren  Tim Albinson  Maria Allgood  Jon Arman  Justin Ayre  Ton7 and Cynthia Bouza  John Caskey  Jito Chadha  Frank Chanault  Come Chantrel  Gerald Chertavian  Mike Courson  Clay DellaCava  Ian deQueiroz  Douglas Durkin  Matt Ginella  Kent Goldman MINUTES Page 16 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING  Jeff Gordon  Matthew Gray  Chris Grow  David Henry  Scott Hudgins  Britt Joyce  Davin Kazama  Deborah Kent-Clark  Sid Landolt  David Leff  Rob Leff  Jenny M.  Andrew Mackenzie  Logan Malouf  Cory Martin  Thomas McDaniel  Kai McDonald  Carl J. Montante III  Scott Moore  Breene Murphy  Kevin Murphy  Leah Nappi and Family  Kevin Parra  Garrett Paul  Danica Bujic Perez  Michael Pinto  Mark and Logan Platzer  Carrie Schwab Pomerantz  Marie Radimsky  Lee Redmond  Mike Regan  Chuy Reyna  Keenan Rice and Family  Tatiana Ruvelson  Hunter and Tyson Solomon  Courtney Schwab  Samantha Schwab  Bruce Steel  Dave Stein  Paula Turner  Connie Varelli  Visit Greater Palm Springs  Lee Vosburgh  Jason and Molly Waggoner  Circe Wallace  Greg Washer  Frank Weigel  Doug Weitman  Carter Westfall  Kevin Wright PUBLIC SPEAKER IN-PERSON: James Vaugh, Esq., CEQA and land use counsel for the project – provided rebuttal comments to the public comments with regards to water usage, evaporation, drought, groundwater replenishment, accuracy of WSA data, lighting, noise, special events, zone change, STVRs, economics, greenhouse gas emissions, and visual and traffic impacts. PUBLIC SPEAKER IN-PERSON: Alena Callimanis, La Quinta – stated that there are several inaccuracies in the reports. Council discussed double standards regarding this project and other developments with lakes; opposing interests regarding STVRs; City’s limited control over this private property; being put in the position of having to decide policy for CVWD and IID; and the responsibility of Council to openly and objectively review any development proposal submitted to the City. THE PUBLIC HEARING REMAINED OPEN MINUTES Page 17 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING MOTION – A motion was made and seconded by Councilmembers Radi/ Sanchez to continue this Public Hearing at a special meeting to be held July 5, 2022, at 4:00 p.m. Motion passed unanimously. DEPARTMENTAL REPORTS – All reports are on file in the City Clerk’s Office. MAYOR’S AND COUNCIL MEMBERS’ ITEMS - none REPORTS AND INFORMATIONAL ITEMS La Quinta’s representative for 2022, Mayor Evans reported on her participation in the following organizations’ meetings:  CVAG COACHELLA VALLEY CONSERVATION COMMISSION  CVAG ENERGY AND ENVIRONMENTAL RESOURCES COMMITTEE  CVAG EXECUTIVE COMMITTEE La Quinta’s representative for 2022, Mayor Pro Tem Fitzpatrick reported on her participation in the following organization’s meeting:  COACHELLA VALLEY MOUNTAINS CONSERVANCY La Quinta’s representative for 2022, Councilmember Peña reported on his participation in the following organizations’ meetings:  IID ENERGY CONSUMERS’ ADVISORY COMMITTEE  SUNLINE TRANSIT AGENCY La Quinta’s representative for 2022, Councilmember Radi reported on his participation in the following organization’s meeting:  CVAG TRANSPORTATION COMMITTEE COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 1:22 A.M. CLOSED SESSION – CONTINUED 4. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6; CITY DESIGNATED REPRESENTATIVE: BILL IHRKE, CITY ATTORNEY; AND UNREPRESENTED EMPLOYEE: CITY MANAGER MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 1:31 A.M. WITH ALL MEMBERS PRESENT MINUTES Page 18 of 18 JUNE 7, 2022 CITY COUNCIL REGULAR MEETING HELD JOINTLY WITH HOUSING AUTHORITY SPECIAL MEETING REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken on Closed Session Item No. 4 that require reporting pursuant to Government Code section 54957.1 (Brown Act). ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers Fitzpatrick/Radi to adjourn at 1:31 a.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California